All I can say is, Apple had better impress with their iPhone 5 introduction, because Amazon certainly got the press to notice and the tech world's panties wet with today's announcement.
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Amazon Set to Unveil $199 'Kindle Fire' Tablet
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http://blogs.computerworld.com/19014/amazon_kindle_fire_tablet?source=rss_blogs
The fact Amazon doesn't mind seeing it getting rooted surprises me and should open up the doors for the homebrew community. Just be careful. Remember what happened to Sony with the PlayStation Network? Amazon can get hacked into someday and it has our credit card information.
A couple of comments from posters who can completely comprehend what the Kindle Fire is targeted for.
The fact Amazon doesn't mind seeing it getting rooted surprises me and should open up the doors for the homebrew community. Just be careful. Remember what happened to Sony with the PlayStation Network? Amazon can get hacked into someday and it has our credit card information.
A couple of comments from posters who can completely comprehend what the Kindle Fire is targeted for.
Laughable, 99.9% of people use their iPad as a toy, Noone is actually going to do serious **** on the iPad, and that's basically FACT.
any all of that stuff you just mention, you can do on an android device (i.e. the fire, apart from the camera).
The Kindle Fire's a glorified e-reader. My rooted Nook Color works great and I really can't consider the fire until I know what's under the hood.
Amazon loses $40 per tablet but makes $400-$500 profit per customer(content) in the next 5 years. Think before you type.
I wonder what sales will hurt the most from the Kindle fire, ipad's or ipod touches? Is there anyone willing to buy a 8gig ipod touch for $229 when the Fire only cost $199? I have a feeling that next week we will see ipod touches below $199 after today's announcement. $150 sounds about right for a ipod touch. If it's a 3g ipod touch then that's a different story.
But at $199 I will buy 3 fires which will complete my Christmas shopping for the family. No way I can buy 3 base model $499 ipads for my wife, son and daughter. Remember this day because Apple is now in a price war which is good for us. I would love to see a 7 inch ipad at $300.
But at $199 I will buy 3 fires which will complete my Christmas shopping for the family. No way I can buy 3 base model $499 ipads for my wife, son and daughter. Remember this day because Apple is now in a price war which is good for us. I would love to see a 7 inch ipad at $300.
First, we are discussing the same post. Not sure if you're getting anything of what i am saying though.
Second -- obviously it is a retarded strategy to sell for a loss and think you can make it up in volume. Volume would only magnify your loss. Rather, they are betting on that the product itself will generate other income-streams, compensating for the subsidy of product A. This is why i brought in Gilette, as they are giving the razor away for free, making money on the blades.
Third, pc-makers were always destined to operate high-volume low-margin businesses. That's what happens when you allow yourself to be the commodity part of a value chain. The value you can extract out of a value chain is corresponding to the power you can exert. This, in turn, is connected to what you actually bring to the table - and whether or not others can compete with you for it. Consequently, service-dominant logic is becoming key.
Now, when it comes to pc-makers and amazon there is a fundamental difference between the two. Unlike pc-makers, amazon can sell at a loss simply because they have means to make that money back elsewhere (in fact, it could mean they make more money - which is why it is an interesting strategy). In general, pc-makers dont have this option, nor do they have the ability to put themselves in a situation which could enable it.
As for successful technology companies, they are abundant. I mentioned MSFT, but i could as easily have named Google. Heck, i'd argue that even Apple is doing it.
Addendum: Easy to read book for those interested in learning more. Quite ****** due to its superficial take, but that is after all what makes it quite great for those of us who dont have care about digging deep. Unfortunately, i do :- )
http://www.amazon.com/Invisible-Engines-Platforms-Innovation-Industries/dp/0262050854
As an Amazon Associate, MacRumors earns a commission from qualifying purchases made through links in this post.
I'll believe the price reduction on iPads when it happens. Apple has no reason to do so unless the Fire is unexpectedly phenomenal in the next quarter.
I would hate to be an Amazon shareholder. Amazon is a company that managed to increase its half-year revenue by 44% and in the same time reduce its net income by 22%. Long-term debt increasing as well while the cash is steadily decreasing.
And now they launch this Fire product that, according to supply-chain analysts, loses them money for each unit sold. The only way the Fire pays out is if it attracts a lot of NEW customers creating Amazon accounts.
On the other hand, AMZN stock has been gaining tremendously in the last year, go figure... (Can you spell 'bubble'?)
I have to disagree. It's running android 2.3 with access to the amazon market place which of course has android apps. There's even talk that Amazon does not care if you root it so the chances of installing vanilla android is very great. But chances are you will lose all the Amazon benefits. This will be faster than Nook Color and $50 cheaper. For me all I care about is music, movies and the internet. The bonus is that you will have access to apps that are guaranteed to work because Amazon is not allowed to use Android marketplace.
Apple's made it clear that it WILL NEVER compete in the 7" Tablet arena, just as they've made it clear that they will never make another computer under $500...
What was Gates 2012 prediction?
Could still be drunk, but i think BillG once said that 2012 would be the year when tablets become (truly) popularized. First thought was that he said it 2007 at all things d, but it may have been earlier and i may have dreamt it :- )
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Really cant be bothered googling for number, but yes. Amazon is making nice money as is. Question is, do you really think you have a better grasp on this than the people running one of the largest companies in the world? The true dominant in their own - ever increasing - sector?
Really? Maybe this will be of interest from Bloomberg. Yea, Amazon is messing up big time
"As its rivals steadily asphyxiate, Amazon is ringing up 50 percent growth in quarterly revenues, and may reach $50 billion in sales this year.
Wal-Mart needed almost twice the time --- 33 years --- to cross that threshold."
Really? Maybe this will be of interest from Bloomberg. Yea, Amazon is messing up big time
"As its rivals steadily asphyxiate, Amazon is ringing up 50 percent growth in quarterly revenues, and may reach $50 billion in sales this year.
Wal-Mart needed almost twice the time --- 33 years --- to cross that threshold."
In my world, selling more is pointless if it earns you less. What it denotes is that your business-model is heading fast into obsolescence.
...which (perhaps) is why it is entering new markets and establishing both new business models and revenue streams, while strengthening its position against its competitors.
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I seriously doubt it will give the iPad any competition. But only time will tell
Fail!
They just launched the "killer Model-T" of tablet computers. Expect more apps and mods for this < $200 tablet. This will outsell the iPad this Christmas season. The "cheap, lousy and successful tablet that Microsoft was too coward to do" is done. Jailbreak it and it is your bitch -- woohoo!
Earlier today, I really was leaning toward a BlackBerry PlayBook. But now after seeing that quick browser where it looks good enough for me, screw RIM! I am not going to wait for the PB to drop in price anymore.
I might go Amazon Kindle Fire all the way even if it might seem slightly underpowered in specs compared to the PlayBook and TouchPad. Where it delivers a knockout punch against them is in media consumption. What is the point of a tablet with better specs when it doesn't have any content? Kindle Fire will already have Angry Birds and my fav game on the iPhone in Plants vs Zombies available. The PlayBook has neither one right now. I might just take that full subscription with Amazon Prime if I like it enough. This really is the perfect weekender tablet for people who love to read and movie buffs while on a long trip somewhere.
Simple. Affordable.
Amazon Kindle Fire Official Demo Video
http://www.youtube.com/watch?v=cdvwO3lr7Yk
^^ It was already enticing enough for me. But watching that video made it even more intriguing. They are not trying to beat Apple or any Android. They weren't trying to attack their competitors in the ad. That ad is Amazon acting like Amazon. Humble. And to alot of people, that is good enough.
I might go Amazon Kindle Fire all the way even if it might seem slightly underpowered in specs compared to the PlayBook and TouchPad. Where it delivers a knockout punch against them is in media consumption. What is the point of a tablet with better specs when it doesn't have any content? Kindle Fire will already have Angry Birds and my fav game on the iPhone in Plants vs Zombies available. The PlayBook has neither one right now. I might just take that full subscription with Amazon Prime if I like it enough. This really is the perfect weekender tablet for people who love to read and movie buffs while on a long trip somewhere.
Simple. Affordable.
Amazon Kindle Fire Official Demo Video
http://www.youtube.com/watch?v=cdvwO3lr7Yk
^^ It was already enticing enough for me. But watching that video made it even more intriguing. They are not trying to beat Apple or any Android. They weren't trying to attack their competitors in the ad. That ad is Amazon acting like Amazon. Humble. And to alot of people, that is good enough.
But you just pulled that number straight out of your ass. iTunes stores are all much larger then Amazon's content offerings (excluding iBookstore, I'd assume) and they are operating at roughly break-even. Amazon generally charges less so their profit margins on content have to be even thinner than Apple's.
I googled and I couldn't find a thing breaking down their operating income on content but I'm going to assume their margins are very slim just like every other company selling this type of content.divinox said:
I am in no way saying that Amazon couldn't come up with a way to make it work, but I don't see how they can make it back on content when the content doesn't give them much in the way of profit. Apple operates the iTunes stores as a service for the users rather then a way to subsidize the device; I don't know if Amazon can manage to do the opposite.
I ought to point out that we are all assuming that Amazon is selling the KF at a loss.
But either way, its a risky strategy. Because, unlike the mythical Gillette Razor handle, the Kindle Fire can be used perfectly well with content that doesn't ring Jeff Bezos' cash register. You could buy a Fire, and use it for nothing other than web surfing and e-mail reading and never download a book or movie.
Then again, there's the numbers to consider: How much do we think Amazon is subsidizing the Fire? $50 or so? How much content would Amazon have to sell to make up that subsidy? Answer: Quite a lot, just to get them to break-even.
There are a couple other things to consider when it coms to the Kindle Fire:
First, there is the Android issue. Samsung today announced it was entering into a licensing agreement with Microsoft, to cover patents its Android phones and tablets infringe. (Yeah, thats how confident Samsung feels about Google's ability to protect its Android partners..) No word on how much its paying, but estimates are in the $10 per handset range. I can guarantee you that Microsoft's IP lawyers and engineers will be taking a very close look at the Fire once it hits the streets.
Secondly, I don't think people have really gotten a good idea of how small a 7" screen is, compared to an iPad's. It's half the size. There are definitely instances where smaller is better (reading on the subway, for instance.) But it is a mistake to think you are getting an iPad at a 60% discount. You are getting a lot less, for a lot less.
Lastly, I think Amazon ought to be applauded for not copying the iPad. This is a product that looks different, works different. That has a different pricing model. And that deserves to succeed, or fail, on its own merits. Whoever engineered this thing came up with their own solutions, rather than simply aping what Apple did.
It's only a danger if a closed system is your only form of security. If it is, you deserve to be attacked.
Sort of like putting diamonds in a safe and leaving it out in the open. It's ok because the safe is secure, right?
Right?
Nowhere can I see how I would sync my existing media onto the fire. I may be wrong but it looks like I would have to buy any content from amazon. If I want the movie I have on my Mac on my kindle, then i would have to buy it.
The minimum requirements clearly say no need to attach to a pc as it is good to go out of the box. However there should be minimum requirements for the syncing software surely?
Anyone?
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I believe that this is the first tablet that offers a different model to the iPad and it will attract those that find the upfront cost of an iPad too much. However please feel free to come here and publicly humiliate me in whatever way you like if this beats the ipad this christmas. I'll expect to be able to to the same in return though.
The minimum requirements clearly say no need to attach to a pc as it is good to go out of the box. However there should be minimum requirements for the syncing software surely?
Anyone?
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I believe that this is the first tablet that offers a different model to the iPad and it will attract those that find the upfront cost of an iPad too much. However please feel free to come here and publicly humiliate me in whatever way you like if this beats the ipad this christmas. I'll expect to be able to to the same in return though.
Clearly that is a projection and not a fact since the product in question does not yet exist in the wild. question is could they have made that kind of money without losing $40/unit.
I think it's a good product based on what I've seen and heard, but the jury is definitely still out on this concept. Apple sells a lot of content but is clearly not putting food on the table with content sales.
You will win your bet simply because the iPad is being sold worldwide, has plenty in stock and can be tested by consumers at many stores. Just the opposite for the Fire. Only being sold in the US, probably will be some shortages, and can't be tested by consumers in stores.
